Simply Good Foods cuts FY26 sales guidance 7-10% after Q2 sales shortfall
Simply Good Foods reported Q2 net sales of $326.0 million, missing forecasts of $359.7 million, and posted a $159.7 million net loss versus a $36.7 million profit a year earlier. It guided FY26 net sales of $1.31-1.35 billion, down 7-10%, and forecast adjusted EBITDA of $217-225 million, a 19-22% decline.
1. Q2 Performance
Simply Good Foods reported Q2 net sales of $326.0 million, missing forecasts of $359.7 million and generating adjusted EPS of $0.45 against $0.41 estimates. The quarter produced a $159.7 million net loss versus a $36.7 million profit a year earlier, driving shares down nearly 19%.
2. Impairment and EBITDA
The results were further weighed by a $184 million non-cash impairment, contributing to gross profit decline. Adjusted EBITDA came in at $55.5 million, below the projected $68 million figure.
3. CEO Turnaround Plan
CEO Joe Scalzo said the company is not satisfied with current performance and has launched measures to strengthen business model economics, streamline operations for greater clarity and efficiency, and rebuild brand investment through enhanced marketing execution to drive household penetration.
4. Updated FY26 Guidance
The company now projects full-year net sales of $1.31-1.35 billion, representing a 7% to 10% decline, gross margins contracting by 300 to 350 basis points, and adjusted EBITDA of $217-225 million, down 19% to 22% from the prior year.